$()$ Canvas

Table $10\mathrm{.}3$

A large distribution center uses some part$-$time employees in its workforce. Each part$-$time employee works a max per month. The workforce requirements $($expressed as the number of part$-$time employees working the maximum hours per month$)$ are given in the following table for the next six periods.

$\backslash$table$[[,$Month,Total$],[,1),21,3,4),5,6],[$Inputs$],[\backslash$table$[[$Forecasted demand$]],50,50,75,75,50,50,],[\backslash$table$[[$Forecasted demand$],[$Workforce level$]]],[\backslash$table$[[$Workforce level$],[$Undertime$]]],[$Overtime$,,,,,,,],[\backslash$table$[[$Overtime$],[$Derived$]]],[\backslash$table$[[$Derived$],[$Uriized time$]]],[\backslash$table$[[$Utilized time$],[$Hires$]]],[$Layoffs$,,,,,,,],[\backslash$table$[[$Layofts$],[$Costs$]]],[$Utilized time$],[\backslash$table$[[$Undertime$]]],[$Overtime$],[\backslash$table$[[$Hires$]]],[$Layoffs$,,,,,,,]]$

Total

The relevant costs are:

Wages $=$ $$\frac{350}{m}$onth $\frac{?}{?}$ worker

Hiring cost $=$$$\frac{100}{w}$orker

Layoff $=$$$\frac{50}{w}$orker

$cost$

Overtime cost $=150\%$ of regular$-$time rate

The current workforce level is $60,$ and overtime cannot exceed $25\%$ of regular$-$time capacity.

Use the spreadsheet approach to answer the following questions.

Use the information in Table $10\mathrm{.}3.$ Use a level strategy with overtime and undertime. Minimize undertime by m during the peak period. If the firm does not pay undertime, what is the total cost of the staffing plan including wages, hiring, and layoffs?